{"id":7923,"date":"2020-08-18T10:48:42","date_gmt":"2020-08-18T09:48:42","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=7923"},"modified":"2025-09-17T13:03:13","modified_gmt":"2025-09-17T12:03:13","slug":"apprenticeships-great-business-investments","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/apprenticeships-great-business-investments\/","title":{"rendered":"Why apprenticeships are great business investments"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tPeople & Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\tWhy apprenticeships are great business investments\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

\n\t\t
\n\t\t\t
\n\t
\n\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"Ian\t\t\t\tIan Knowlson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

Apprenticeships hit the <\/span>news <\/span>headlines recently as part of the government\u2019s<\/span> <\/span>A Plan for Jobs 2020<\/span>, which is the latest <\/span>component<\/span> of the coronavirus<\/a> <\/span>(COVID-19) <\/span>relief measures. <\/span> <\/span><\/p>\n\n\n\n

Increased funding for apprenticeships and similar schemes make them even more attractive to businesses. <\/span> <\/span><\/p>\n\n\n\n

I think <\/span>they\u2019re<\/span> one of the best ways of <\/span>investing in an<\/span> employee<\/span>\u2019s future<\/span>. As such <\/span>it\u2019s<\/span> also a way of<\/span> investing in <\/span>your<\/span> business \u2013 <\/span>but <\/span>few businesses realise the <\/span>full <\/span>value that apprentices bring. <\/span> <\/span><\/p>\n\n\n\n

How does the apprenticeship scheme work?<\/h2>\n\n\n\n

I <\/span>advise you to<\/span> research this yourself, but <\/span>here\u2019s<\/span> a basic overview of how apprenticeships <\/span>work<\/span>. <\/span> <\/span><\/p>\n\n\n\n

I<\/span>t\u2019s<\/span> important to remember that apprenticeships are <\/span>structured, <\/span>vocational training. They deliver a real qualification<\/span>, and 20% of the apprentice\u2019s working time <\/span>has to<\/span> be spent training<\/span> on apprentice-related tasks<\/span>. <\/span><\/p>\n\n\n\n

The<\/span> levels of training attached to apprenticeships <\/span>provide<\/span> everything from the equivalent <\/span>of<\/span> school qualifications, all the way up to postgraduate-degree equivalent. <\/span> <\/span><\/p>\n\n\n\n

Therefore, the first step is to <\/span>ensure there\u2019s <\/span>apprenticeship <\/span>training<\/span><\/a> to match the role you have in mind. For example, you might want somebody to work in the finance team and specialise in taxation. <\/span><\/p>\n\n\n\n

Or y<\/span>ou might want<\/span> training specific<\/span> to your industry, such as a manufacturing speciality. There\u2019s hundreds <\/span>of choices<\/span>, offered by a range of professional bodies.<\/span> <\/span><\/p>\n\n\n\n

You\u2019ll<\/span> <\/span>then <\/span>need to find a provider offering this kind of apprenticeship training<\/span>.<\/span> <\/span><\/p>\n\n\n\n

Somebody will need to take ownership of the apprenticeship<\/span> application. Obviously, somebody will <\/span>also <\/span>need to manage the apprentice. <\/span><\/p>\n\n\n\n

I\u2019ve<\/span> found the best managers are those that were formerly apprentices themselves<\/span> because this means <\/span>they\u2019re<\/span> more inclined to offer mentorship and coaching too<\/span>. <\/span> <\/span><\/p>\n\n\n\n

What do apprenticeships cost and is there funding for employers?<\/h2>\n\n\n\n

Once <\/span>you\u2019ve<\/span> <\/span>identified<\/span> the training<\/span> online<\/span>, <\/span>you\u2019ll<\/span> see what the costs are. <\/span><\/p>\n\n\n\n

Unless yours is a large business, the government will pay 95% of the cost of training and assessing the apprentice. <\/span>This is paid directly to the training provider, and y<\/span>o<\/span>u pay the remaining 5%. <\/span><\/p>\n\n\n\n

You also pay the <\/span>apprentice\u2019s <\/span>salary<\/span> (with 12 months being the shortest possible period)<\/span>, and there are <\/span>apprenticeship <\/span>minimum<\/span> <\/span>hourly <\/span>rates<\/span><\/a> <\/span>that apply. <\/span> <\/span><\/p>\n\n\n\n

You might receive some payments from the government. <\/span>If the apprentice<\/span> is<\/span> <\/span>16<\/span> to <\/span>18<\/span> years old<\/span> \u2013 or those <\/span>who are <\/span>19<\/span> to <\/span>24 <\/span>years old with<\/span> special needs and therefore an\u202f<\/span>Education, Health and Care (EHC) Plan<\/span><\/a>\u202f\u2013\u202f<\/span>you will <\/span>get a payment of \u00a31,000<\/span><\/a>\u202fper apprentice.<\/span> <\/span> <\/span><\/p>\n\n\n\n

The great news is that the <\/span>aforementioned<\/span> A<\/a><\/span> Plan for Jobs 2020<\/a> coronavirus relief brings an <\/span>additional<\/span> payment of \u00a32,000 for every apprentice under 25, while for apprentices 25 and over a payment of \u00a31,500 is<\/span> now<\/span> available.<\/span> <\/span><\/p>\n\n\n\n

Once <\/span>you\u2019ve<\/span> sorted out the training and funding, <\/span>you\u2019ll<\/span> need to advertise for an apprentice. <\/span><\/p>\n\n\n\n

This is <\/span>similar to<\/span> advertising any job, but is <\/span>best <\/span>done through the <\/span>Find An Apprenticeship<\/span><\/a> online service. <\/span><\/p>\n\n\n\n

Existing employees can also take<\/span> <\/span>up apprenticeships and <\/span>it\u2019s<\/span> important to note that <\/span>they\u2019re<\/span> not limited to younger people. In fact, increasing numbers of people over 25 are taking advantage of the scheme.<\/span> <\/span><\/p>\n\n\n\n

Why take on an apprentice?<\/h2>\n\n\n\n

Once <\/span>you\u2019ve<\/span> got on top of the admin requirements then <\/span>it\u2019s<\/span> not too difficult<\/span> to hire an apprentice<\/span>, and the <\/span>Apprenticeships Service<\/span><\/a> offered by the government is <\/span>a great source<\/span> of support. <\/span> <\/span><\/p>\n\n\n\n

But you might be wondering if an apprenticeship is worth it when you could simply take on a basic <\/span>trainee<\/span>.<\/span> <\/span><\/p>\n\n\n\n

This overlooks the key benefit of apprenticeships: <\/span>c<\/span>reating a skilled employee. <\/span> <\/span><\/p>\n\n\n\n

There\u2019s<\/span> a skills shortage <\/span>across<\/span> the world, and especially here in the <\/span>UK<\/span>. Over the <\/span>p<\/span>ast few decades<\/span>,<\/span> the UK has transitioned to a service-based economy, but we lack <\/span>many of the key<\/span> specialists \u2013 the engineers, <\/span>for example, <\/span>and especially people <\/span>skilled<\/span> in areas <\/span>such as <\/span>digital transformation. <\/span> <\/span><\/p>\n\n\n\n

If <\/span>it\u2019s<\/span> done right, an apprenticeship is a winning situation for everybody. <\/span><\/p>\n\n\n\n

Your business will get a <\/span>highly<\/span> <\/span>skilled<\/span> and qualified employee. The employee gets the qualifications and experience they need. And society and<\/span> <\/span>communities<\/span> benefit because we<\/span> gain<\/span> a skilled workforce. <\/span> <\/span><\/p>\n\n\n\n

People often ask how <\/span>a company can <\/span>retain<\/span> an apprentice after the training ends. Well, the answer should be obvious. <\/span>They\u2019re<\/span> an employee and <\/span>they will respond to motivation, just like any other employee. <\/span>I\u2019m<\/span> drawn back to my management training and the <\/span>Herzberg’s Motivation-Hygiene Theory<\/span><\/a>. <\/span> <\/span><\/p>\n\n\n\n

In short, treat employees well and they will repay your loyalty with their own loyalty. <\/span> <\/span><\/p>\n\n\n\n

Some <\/span>employers could be<\/span> concerned <\/span>that <\/span>apprentices<\/span> <\/span>won\u2019t<\/span> stay the course, especially considering the investment <\/span>they<\/span> must make. <\/span><\/p>\n\n\n\n

But again, my advice is to remember <\/span>they\u2019re<\/span> an employee and are recruited just like any other employee. The interview process is vital in determining personality and character, as well as enthusiasm and potential. <\/span><\/p>\n\n\n\n

It\u2019s<\/span> also worth noting that the current economic climate means there\u2019s large numbers of people applying for apprenticeships, so be prepared to take your time to find the person <\/span>who\u2019s<\/span> right for the role and who will be a good fit in your organisation. <\/span> <\/span><\/p>\n\n\n\n

What can apprentices bring to your company?<\/h2>\n\n\n\n

I\u2019ve<\/span> used the apprenticeship scheme in companies <\/span>I\u2019ve<\/span> been involved with, and regularly <\/span>advise my clients to<\/span> make use of it too.<\/span> <\/span><\/p>\n\n\n\n

The training<\/span> directly <\/span>benefit<\/span>s<\/span> your business in terms of delivering a highly skilled employee and can also be applied to your business.<\/span><\/p>\n\n\n\n

I<\/span>f<\/span> your marketing apprentice needs to create a social media plan, for example, then why not <\/span>apply it to<\/span> the business\u2019 real-life social media accounts? <\/span> <\/span><\/p>\n\n\n\n

The other way the business can <\/span>benefit<\/span> is to <\/span>regularly ask<\/span> the apprentice to <\/span>give presentations <\/span>about what they are learning and being trained in<\/span>. <\/span> <\/span><\/p>\n\n\n\n

This can be incredibly illuminating. <\/span> <\/span><\/p>\n\n\n\n

I<\/span>\u2019ve<\/span> seen people <\/span>who\u2019ve<\/span> worked in a role for decades <\/span>learning things they <\/span>didn\u2019t<\/span> know from apprentices.<\/span> This is especially <\/span>useful<\/span> in professions where things are constantly changing and developing, such as those relating to technology. <\/span> <\/span><\/p>\n\n\n\n

An apprentice offers a way for the entire company to keep on top of these changes. <\/span> <\/span><\/p>\n\n\n\n

Speaking personally, my role is within people management, <\/span>training<\/span> and recruitment. <\/span><\/p>\n\n\n\n

Recently one of our digital marketing apprentices told me about <\/span>Loom<\/span><\/a>. This is <\/span>a new technology<\/span> that lets you send a PowerPoint presentation, <\/span>as one <\/span>example, while recording yourself on the webcam. You appear in a bubble at the bottom of the screen. <\/span> <\/span><\/p>\n\n\n\n

This has the potential to revolutionise\u00a0a lot of what\u00a0I do \u2013 but I might not have heard about it unless I had that vital contact with somebody so close to\u00a0the latest developments in\u00a0technology thanks to\u00a0their apprenticeship\u00a0training.\u00a0\u00a0<\/span><\/p>\n\n\n\n

Final thoughts<\/h2>\n\n\n\n

Apprenticeships are a terrific way of enhancing your business and <\/span>are<\/span> a sound investment in <\/span>people who have the potential to change <\/span>how<\/span> you work. <\/span><\/p>\n\n\n\n

With the <\/span>additional<\/span> cash bonuses introduced by the coronavirus relief measures, they form an incredibly attractive proposition for <\/span>just about any<\/span> kind of business<\/span> that aims to grow and thrive.<\/span><\/p>\n\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Guide to employing the perfect person<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Thinking of recruiting? Our clear, comprehensive guide will steer you through the process and get your employee off to a great start.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"Using\t\t\t<\/div>\n<\/div>\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t

Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t
\n\t\t\t\t